Gold Prices Show Significant Move To The Upside Amid Dollar Weakness

(RTTNews) - Gold prices showed a substantial move to the upside during trading on Friday following the modest uptick seen in the previous session.

After inching up $0.50 to $1,278.20 an ounce on Thursday, the price of gold for December delivery spiked by $18.30 to $1,296.50 an ounce.

The rally by gold prices came amid a decrease in the value of the U.S. dollar, with uncertainty about the outlook for tax reform weighing on the greenback.

While the House approved their tax reform bill on Thursday, significant differences with the Senate version could still hinder final passage of the legislation.

On the U.S. economic front, the Commerce Department released a report showing a much bigger than expected jump in housing starts in the month of October.

The report said housing starts spiked by 13.7 percent to an annual rate of 1.290 million in October from a revised 1.135 million in September.

Economists had expected housing starts to climb to an annual rate of 1.185 million from the 1.127 million originally reported for the previous month.

Building permits, an indicator of future housing demand, also surged up by 5.9 percent to a rate of 1.297 million in October from a revised 1.225 million in September.